Which of the following would be represented by a negative value of the random supply shock, υt
$\text { ? }$
A)an irrational wave of pessimism among investors
B)a decrease in government spending
C)oil price decreases resulting from a breakdown in the cartel
D)a decrease in the central bank's inflation target

Question

Quizplus · Accepted Answer

A negative value of the random supply shock, υt, typically represents a positive supply shock, such as a decrease in oil prices due to a breakdown in the cartel, which would increase supply and reduce costs.

Which of the Following Would Be Represented by a Negative ? \text { ? } ?

Which of the Following Would Be Represented by a Negative $\text { ? }$